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Markets gain on spike in trading
Increasing investor interest in stocks last week overcame a strong wave of profit-taking and sent the VN-Index up to 519.17 by the end of last week, a cumulative gain of 12.18 points or 2.4 per cent over the previous Friday’s close.
Average daily trading value on the HCM City Stock Exchange was a substantial VND2.12 trillion (US$119.1 million), on a brisk average daily volume of over 55.6 million shares.
Sacombank (STB) continued as the most active share, with a total volume over the course of last week of 27.3 million shares.
On the Ha Noi Stock Exchange, the HNX-Index added 4.8 points or just over 3 per cent over the previous Friday’s close to end the last week at 161.98.
Average turnover on the northern market reached VND940.4 billion ($52.8 million) per session, on an average volume of nearly 27.9 million shares. Kim Long Securities (KLS) held down the spot as most active share on this bourse, with 13.7 million traded.
"Movements on global markets began to impact again upon domestic investors," said Dao Van Khanh, an analyst with a Ha Noi-based securities firm. Khanh noted that domestic markets reacted to fluctuations in China’s markets but turned around on supportive data about the US economy.
"When the domestic economy has been in a holding pattern, trade dependent on global markets remained acceptable," Khanh said.
Newly-listed stocks, including shares of rubber producer Casumina (CSM), DIC Investment Trading Co (DIC) and PetroVietnam Construction (PVX), all appeared to encourage investors to participate more strongly in the market this past week, Khanh said, noting that all had strong volumes and gains in value on the week.
FPT Securities Co analyst Tran Quang Vinh said that corporate values were decisive in the process of these firms gaining investor confidence.
Vinh also noted that investors shifted from penny stocks earlier in the week to blue chips by later in the week, especially once the VN-Index passed a supportive mark of 512 points. He saw the shift as a reflection of growing investor expectations of more supportive economic news and an anticipation that the Index was ready to move to a new high in the near future.
But Duong Hong Ha from Tri Viet Investment attributed Friday’s spike in volume to a sign of increasing demand for quick profit, which would lead to another wave of profit-taking as early as this coming week.
Vinh set the resistance zone for the VN-Index this week at 520-525 points but warned that a reversal could come suddenly before the Index reached this zone.
"Financial blue chips should be the centre of attention next week," Vinh said.
Meanwhile, foreign investors became net sellers on the HCM City Stock Exchange last week, selling off a net volume of 1.6 million shares, while they were net buyers in Ha Noi, picking up 2.2 million shares.
Blue chips with promising business prospects like property trader Hoang Anh Gia Lai (HAG), Hoa Phat Group (HPG) and Kinh Bac Urban Development (KBC) continued to attract the most favour from this sector.
Khanh noted that foreign investors in HCM City offloaded financial shares after a long period of accumulation.
Last week’s bull market didn’t extend to the struggling unlisted public companies market, where the UPCoM-Index slid 20.22 points on the week to close at 76.32. Average trading volume was 150 million shares per day, worth VND1.3 billion ($73,000).
The State Securities Commission has reportedly been working with the central bank on the listing of some commercial banks on UPCoM, according to Dau tu Chung khoan (Securities Investment), with discussions reportedly focusing on giving commercial banks the most open conditions to list on this market.
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